[HONG KONG] Two investment firms are setting up offices in Hong Kong to attract money from the region, the latest sign of renewed financial activity in the city following government efforts to defend the financial hub’s status.
Paris-based Ardian SAS is opening an outlet to cater to the rising demands from clients including family offices from China, according to sources familiar with the matter, who requested not to be named because the information is private. The firm also wants to be closer to sovereign wealth funds and insurers in the region, one of the sources added.
The investment manager, which advises US$177 billion of assets, will add Hong Kong as its fifth Asia office after Seoul, Tokyo, Beijing and Singapore. The company has at least 14 staff working in the existing Asia offices, according to its website.
Global investors are seeing signs of improving sentiment towards China. The Hang Seng benchmark index in Hong Kong has rebounded some 18 per cent year-to-date against the backdrop of interest in DeepSeek’s ability to produce capable AI models at lower costs.
However, many long-term investors continue to stay on the sidelines, as they look for signs of a sustainable rally in China. Asset allocators hesitate putting money into China-focused private equity and venture funds, given the struggle for exits.
Those from North America especially remain cautious, with Ontario Teachers’ Pension Plan Board planning to shut down its Hong Kong office and wind down “on-the-ground operations” over the coming 18 months.
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Ardian is applying for licenses with the Hong Kong Securities and Futures Commission (SFC), one of the sources said. It’s also planning to hire eight to nine staff for sales, investments and compliance, who will be based out of the International Finance Centre.
A spokesperson for Ardian and SFC declined to comment.
Separately, Arga Investment Management, a Stamford, Connecticut-based firm, is planning to open an office in Hong Kong, according to a source familiar with the matter.
The firm manages US$19 billion of assets, according to its LinkedIn page, which also includes a hiring advertisement for Hong Kong.
The office would be its fifth, following operations in the US, UK and India, according to its website. Arga’s clients include family offices, pensions and endowments. Arga could not immediately be reached for comment. BLOOMBERG
